The 50 year-old manager, who led the south London club into the Barclays Premier League in May announced at a press conference with Palace co-chairman Steve Parish that it had been agreed he leave the club by 'mutual consent'.

The Eagles have endured a tough start to the season claiming just three points from eight games.

Final straw: Fulham's 4-1 at Selhurst Park pushed Holloway to the brink

Holloway said: "I have to hold my hand up and say we didn't keep the spirit that got us up. We changed too much too quickly. Someone new coming in now with a tad more experience at this level will have 30 games left.

Holloway had been subject to increasing pressure after the 4-1 defeat to relegation rivals Fulham on Monday night.

On the match, which would prove his last as Crystal Palace manager, Holloway admitted: "What I say at half time normally has an effect on people. On Monday, it didn't."

Frustrated: Holloway admitted the players were not responding to him effectively
He added: " I'm proud to have been involved with Palace and I wouldn't want to out-wear my welcome"

Parish said: "Ian felt that a new approach might help keep us in the division. I'd like to put the record straight. We've never fallen out. We've worked together brilliantly. We feel we need to move on to progress. I've enjoyed every minute of working with Ian. He leaves our club with his head held very high."

Holloway guided the Eagles to promotion via the play-offs in May but leaves the club after less than a year in charge.

Former Stoke City manager Tony Pulis has been installed as the early favourite to take the reins in south London ahead of Neil Warnock who managed the club between 2007 and 2010.

Parish confirmed that Assistant Manager Keith Millen will take temporary charge of the game against Arsenal on Saturday.